How to Determine Place of Supply

*Location of Supplier: It is the registered place of business of the supplier

*Place Of Supply: It is the registered place of business of the recipient

Let’s understand this with the help of two examples

Example 1: Determining Place of Supply for Intra-State Supply of Goods

Let us assume there is a supplier of craft products, Kloud Creations Pvt. Ltd with the registered office in Bangalore, Karnataka. It supplies goods to schools in Manipal, Karnataka. Here, since the supplier as well as the recipient are located in same state i.e Karnataka, it will be counted as ‘Intra-State Supply Of Goods’ and hence SGST and CGST will be levied.

Let us assume the supplier of craft products, Kloud Creations Pvt. Ltd has their registered office in Bangalore, Karnataka and the recipient i.e Delhi Public School is located in Jaipur, Rajasthan. Here, since the supplier and the recipient are located in different states i.e Karnataka and Rajasthan, it will
be counted as ‘Inter-State Supply Of Goods’ and hence IGST will be levied.

There are specific provisions for determination of place of supply of goods which depend on:

*The place of supply of goods: where the supply involves movement of goods

*The place of supply of goods: where the supply involves no movement of goods

*The place of supply of goods: in case of export and import of goods